Synopsis: The company has secured a major metro rail infrastructure subcontract, strengthening its project pipeline and positioning it for greater participation in large-scale urban transportation development projects.
The shares of this micro cap company majorly engaged in the business construction and civil infrastructural development, hits upper circuit after the company secures major metro rail infrastructure subcontract which is worth more than its market capitalization
With the market capitalization of Rs. 380 Crores, the shares of IL&FS Engineering & Construction Co Ltd hits upper circuit of 5 percent to Rs. 29 per share from its previous day close of Rs. 27.60 per share and is trading at a P/E of 96 where as industry P/E stands at 17.6
What is the NEWS
IL&FS Engineering & Construction Co. Ltd. has secured a significant subcontract under the Jaipur Metro Phase-II MRTS project, adding a major urban infrastructure project to its order book. The scope includes the design and construction of an elevated viaduct, elevated stations and a spur line connecting the corridor to the depot, with architectural finishing works excluded from the package. The project covers a stretch from chainage (-) 600 metres to 11,400 metres.
The subcontract is valued at Rs. 414.05 crore, inclusive of taxes, and accounts for 49% of the total contract value awarded by Jaipur Metro Rail Corporation Limited (JMRC). The company has received the necessary Letter of Award (LoA) from the consortium’s lead member and main contractor, formalising its role in the project. The order is expected to strengthen revenue visibility and reinforce the company’s presence in India’s growing metro rail infrastructure sector.
About the Company and Financials
IL&FS Engineering & Construction Co. Ltd. is an infrastructure engineering and construction company engaged in executing large-scale projects across transportation, buildings, power, water, irrigation and urban infrastructure segments. The company has experience in developing highways, metro rail systems, bridges, industrial facilities and other civil construction projects across India. Over the years, it has built expertise in engineering, procurement and construction (EPC) services, undertaking complex infrastructure assignments for government agencies and private sector clients.
Year on Year analysis: Revenue from operations has decreased from Rs. 102 Crores to Rs. 30 Crores, down 70 percent. Operating loss has narrowed from Rs. 43 Crores to Rs. 19 Crores and net profit has increased from Rs. 7 Crores to Rs. 10 Crores, up 43 percent.
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 62 Crores to Rs. 30 Crores, down 51 percent. Operating loss has widened from Rs. 3 Crores to Rs. 19 Crores and net profit has increased from Rs. 2 Crores to Rs. 10 Crores, up 400 percent.
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